BILL ANALYSIS �
AB 526
Page 1
Date of Hearing: April 17, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 526 (Melendez) - As Amended: April 1, 2013
Policy Committee: Veterans
AffairsVote: 9-0
Urgency: No State Mandated Local Program:
Yes Reimbursable: Yes
SUMMARY
This bill extends financial deferral protection for members of
the U.S Military Reserve and National Guard to an expanded
definition of reservists, and adds utility bills to the current
list of deferrals, which include mortgages, credit card
payments, installment accounts, vehicle loans, and property
taxes. Specifically, this bill:
Deletes the requirement that a service member must have served
in Afghanistan or Iraq, and clarifies the definition of
reservist and military service.
FISCAL EFFECT
No significant state or local impact. This bill expands the
potential number of reservists who could qualify for up to 180
days of deferred property tax payments without penalties. Absent
a world conflagration, any deferrals and/or waived penalties
should be de minimis .
COMMENTS
Rationale . The author's intent is to apply current financial
deferral eligibility to reservists serving on active duty in
places other than Iraq and Afghanistan, and to add utility bills
to the authorized deferrals.
According to the author, "Current California law provides
financial protections for reservists who are called to active
duty to serve in Iraq and Afghanistan but not if the reservists
(are) called to active duty elsewhere. When a military reservist
AB 526
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is called to active duty they have to leave their civilian job,
for the time being, and are put on military pay which is usually
substantially less than what they were making as a civilian.
With this dramatic shift in an individual's or family's budget
it can cause a lot of additional anxiety and stress with
budgetary shortfalls on top of the stress of being called to
fight for your country.
"This bill does not exempt military reservists from paying their
financial obligations; it allows for a deferral period without
interest. All their obligations will have to be paid in full. AB
526 will provide our military reservists and their families with
the peace of mind regarding their finances while they fight for
our country."
Analysis Prepared by : Geoff Long / APPR. / (916) 319-2081